Hogan introduces bill to help small businesses afford to give workers paid time off

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Updated: 6:31 PM EST Jan 12, 2018

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WEBVTT ANDRE I-TEAM REPORTER DAVID: COLLINS HAS THE STORY FROMANNAPOLIS.DAVID: AS DEBATE RAGED BOTH HEREIN THE HOUSE AND SENATEREGARDING THE VETO OVERRIDE,GOVERNOR HOGAN QUIETLYINTRODUCED LEGISLATION GIVINGSMALL BUSINESSES TAX RELIEF TOHELP THEM COMPLY WITH PAID SICKLEAV>> WE HAVE A COMPANION BILL, ATAX INCENTIVE FOR THOSE SMALLBUSINESS THAT ARE HURTING, TOHELP THEM PAY FOR THESBENEFITS.DAVID: THE GOVERNOR QUIETLY HADTHE SMALL BUSINESS RELIEF TAXCREDIT INTRODUCED IN THE HOUSEAND SENATE IN ANTICIPATION OFTHE VETO OVERRIDE OF PAID SICKLEAVE.>> MY MAIN CONCERN WAS THAT ITWAS GOING TO HURT THE SMALLESTOF BUSINESSES.IT IS GOING TO KILL BUSINESSESAND JOBS.DAVID: THE BILL PROVIDES$1MILLION OVER FIVE YEARS IN TAXCREDITS TO BUSINESSES WITH FEWERTHAN 50 EMPLOYEES THAT PROVIDEPAID LEAVE BENEFITS TO THEIRWORKERS.THE TAX CREDIT WOULD EQUAL ATHOUSAND DOLLARS FOR EACHQUALIFIED EMPLOYEE.BUT THERE ARE SOME STRINGSATTACHED.IN ORDER TO GET THE TAX CREDIT,A BUSINESS MUST ALSO PROVIDEOTHER PERKS TO WORKERSFOR EXAMPLE, SUBSIDIZEDTRANSPORTATION, DEPENDENT CAREASSISTANCE, CONTINUING EDUCATIONOR MAKE CONTRIBUTIONS TO AHEALTH SAVINGS ACCOUNT.>> WE ALL AGREE ON PROVIDINGPAID SICK LEAVE AND HOW WE GTHERE.DAVID: THE GOVERNOR IS URGINGLAWMAKERS TO FAST TRACK HISBILL.IT IS NOW IN THE HANDS OF THESENATE BUDGET AND TAX COMMITTEEAND BEFORE THE HOUSE WAYS ANDMEANS COMMITTEE.

Maryland Senate overrides governor's veto of paid sick leave

Hogan introduces bill to help small businesses afford to give workers paid time off

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The bill requires employers with 15 or more employees to provide five earned paid sick days that can also be used to take care of legal problems and issues related to domestic violence.

The Maryland House of Delegates voted Thursday 88-52 to override the veto. The bill takes effect in 30 days. Employees can earn an hour of sick leave for every 30 hours they work.

Republicans cited concerns over privacy. They support the governor's paid sick leave bill that phases in the requirement and also provides tax incentives to do it.

Gov. Larry Hogan anticipated the veto override and has introduced a bill designed to help small businesses afford to give workers paid time off.

As debate raged both in the House and Senate regarding the veto override, Hogan quietly introduced legislation giving small businesses tax relief to help them comply with paid sick leave.

"We have a companion bill, a tax incentive for those small business that are hurting, to help them pay for these benefits," Hogan said.

The governor quietly had the Small Business Relief Tax Credit introduced in the House and Senate in anticipation of the veto override of paid sick leave.

"My main concern was that it was going to hurt the smallest of businesses. It's going to kill businesses and jobs," Hogan said.

The bill provides $100 million over five years in tax credits to businesses with fewer than 50 employees that provide paid leave benefits to their workers. The tax credit would equal $1,000 for each qualified employee.

But there are some strings attached. In order to get the tax credit, a business must also provide other perks to workers. For example, they must provide subsidized transportation, dependent care assistance, continuing education or make contributions to a health savings account.

"We all agree on providing paid sick leave and how we get there," Hogan said.

Republicans and Democrats disagree over how many workers the governor's bill would cover.

"The governor's bill would give me some tax credits, and, as a businessman, that's important to me," said Sen. Wayne Norman, R-Harford County.

"(There are) 240,000 low-paid workers; that's a difference. They won't be covered if you choose to vote for the governor's bill," said Sen. Paul Pinsky, D-Prince George's County.

The governor is urging lawmakers to fast-track his bill. It is now in the hands of the Senate Budget and Taxation Committee and before the House Ways and Means Committee. No hearing dates have been set yet.